Federal agents raided over 20 Somali-owned daycare centers in Minneapolis, exposing a massive COVID-era taxpayer fraud scheme that state officials ignored despite viral warnings.
Story Snapshot
- FBI executed 22 search warrants at approximately 20 childcare centers on April 28, 2026, targeting billing for non-existent services.
- YouTuber Nick Shirley’s December 2025 video sparked the probe after revealing empty centers collecting $185 million in federal funds.
- Vice President J.D. Vance, Elon Musk, and Attorney General Pam Bondi amplified the video, forcing federal action against Minnesota’s lax oversight.
- No arrests yet, but raids signal Trump’s administration cracking down on waste from pandemic handouts and illegal immigration-linked fraud.
- State officials face lawsuits and congressional grilling for shielding operators while families suffered from disrupted services.
Viral Video Ignites Federal Scrutiny
In late December 2025, YouTuber Nick Shirley visited Minneapolis childcare centers, filming vacant storefronts despite federal funding. His video amassed tens of millions of views, exposing centers allegedly billing taxpayers for services never provided. Amplification by Vice President J.D. Vance, Elon Musk, and then-Attorney General Pam Bondi turned citizen journalism into a national scandal. Minnesota’s Office of Inspector General checked nine sites on January 2, 2026, claiming operations were normal, but federal authorities disagreed.
The Trump administration froze $185 million in federal childcare funds to Minnesota in January 2026, halting support for a system rife with abuse. This action addressed pandemic-era programs that funneled billions into fraudulent schemes since 2021. State regulators had licensed most centers and visited recently, yet Shirley’s footage showed inactivity, highlighting government failure to protect taxpayer dollars from waste.
Raids Target Fraud Network
On April 28, 2026, FBI agents with state and local partners executed 22 search warrants at about 20 Minneapolis locations, many Somali-owned daycares like Mini Childcare Center and Metro Learning Center. Agents used pry bars for entry before 7 a.m., photographing and seizing files without arrests. The Department of Justice confirmed the operation focused on financial crimes, not immigration, though prior enforcement linked to mass arrests and tragic shootings.
Officials described the raids as a renewed push against COVID fraud networks billing for ghost services. Centers appeared non-operational in Shirley’s video, yet state checks found children present at eight of nine. This discrepancy fueled accusations that Minnesota prioritized appeasing operators over accountability, wasting funds meant for American families.
State Officials Face Backlash
Three centers sued Minnesota in February 2026, claiming unfair punishment as the state capitulated to federal pressure. Attorney Jason Steck argued issues stemmed from minor record-keeping errors, not fraud. However, Rep. James Comer launched House Oversight probes into Governor Walz’s handling, scheduling hearings. DCYF Commissioner Tikki Brown endured lawmaker accusations of lying about investigations during an April 29 hearing.
These developments underscore Trump’s commitment to rooting out fiscal mismanagement from leftist policies. Minnesota’s childcare fraud drained resources amid inflation and high costs, hurting working families. Federal raids promise justice, deterring future abuse of relief funds intended for citizens, not schemes exploiting open borders and weak oversight.
Sources:
Timeline of alleged Minnesota daycare fraud: From Nick Shirley’s viral video to new federal raids
FBI raids Minneapolis childcare facilities in fraud investigation
